Greek shipowner George Procopiou is poised to splash out nearly $470m on seven large conventional tanker newbuildings.

Shipbuilding sources said Procopiou’s Dynacom Tankers Management is at an advanced stage of discussions with its favourite Chinese shipyard, New Times Shipbuilding.

The company has set its sights on two VLCCs and five 158,000-dwt suezmaxes. There is talk that it is paying around $94m each for the 300,000-dwt crude oil tankers and $55m apiece for the suezmaxes.

Shipyard officials declined to comment, citing contract confidentiality.

In an email to TradeWinds, a Dynacom executive did not deny the information and said the company was "exploring technical specifications so as to obtain the best environmental solution".

A shipbuilding player familiar with the deal described the newbuilding discussions as in “advance-stage” talks.

“Nothing is inked yet, including letter of intent,” he said. “If all goes well, the signing of the contract may take place next month after the celebration of Chinese New Year.”

China and several other countries in the Far East will be closed for the holidays that begin on 24 January for the lunar New Year.

Compliant-fuel offerings

Shipbuilding players said Dynacom is opting for conventional tanker newbuildings because it believes low-sulphur fuel will cost less in the near future. It will not be installing scrubbers on the vessels.

Last autumn, Procopiou told TradeWinds he would opt for compliant fuel over LNG and scrubbers, saying: “Things are changing too fast and other, better, solutions will be coming.”

He said he would order ships with smaller engines and burn compliant fuel or even 0.1% low-sulphur offerings.

"I do believe that LNG is the fuel of the moment," he added. "But that moment will not last for very long. It is a good fuel but for a very short period. Technology is moving in very big leaps and we have to target the right direction."

Dynacom is one of New Times' largest customers — it is said to have ordered close to 40 vessels there over the past 20 years.

“Dynacom is a close client of New Times Shipbuilding,” the shipbuilding player said.

“It currently does not have any vessels under construction there, but it has previously delivered VLCCs, suezmax tankers, aframax tankers, LR1 tankers and kamsarmax bulk carriers to the Greek company.”

Privately owned New Times is located in Jiangyin city, Jiangsu province. According to Clarksons’ Shipping Intelligence Network, the yard sits on an orderbook of about 50 newbuildings, consisting of MR1s, aframaxes, LR2s, suezmaxes, newcastlemax bulkers and VLOCs.

It secured its most recent newbuilding in November, when Theodore Angelopoulos-led Metrostar Management of Greece ordered up to half-a-dozen scrubber-fitted suezmax tankers.